2002 Annual Report
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OVERVIEW AND SUMMARY
1. The 1986 - 1990 Hepatitis C Fund (the "Trust Fund")
completed its second full year of operation on March 31,
2002 ("Year 2"). March 31, 2001 was the end of
the first year after 16 months of operation.
2. A total of approximately $220 million has been paid in
benefits to approximately 5400 claimants. There are a further
1900 claims which are in process awaiting the submission
of further information by the claimants or the completion
of a traceback search, or both.
3. The audited financial statements, Schedule
"B", indicate a total of $790,568,000 held by the Trustee as
at March 31, 2002. The total unpaid liability of the provincial governments
is approximately $276,939,458.38 for a total available to class members of
approximately $1.07 billion.
4. The administration expenses for the twelve-month period
were $16 million, inclusive of approximately $4.5 million
in class counsel fees and other legal fees incurred prior
to this 12- month period. The Joint Committee expects that
the overall administration expenses in Year 3 will be less
than in Year 2. The Joint Committee is recommending that
the budgets for the Administrator and Canadian Blood Services
be reduced in Year 3 to reflect a lower volume of applications.
5. The following chart summarizes the budget versus actual
expenses for the service providers in the past year:
|
Service
Provider
|
Budget
to March 31, 2002
|
Actual
|
Variance
from budget
|
Note
|
| Auditor (Deloitte & Touche) |
$45,000.00
|
$45,000.00
|
($0.00)
|
No amount has been paid to date. |
| Trustee (Royal Trust) |
$166,870.00
|
$103,824.00
|
($63,046.00)
|
No monies beyond
actual expenses have been paid. |
| Investment Manager (TD Asset Management
Inc.) |
$263,004.00
|
$203,573.31
|
($59,430.69)
|
No monies beyond actual expenses have
been paid. |
| Investment Consultant (Towers
Perrin) |
$56,000.00
|
$56,000.00
|
($0.00)
|
All amounts have been paid. |
| Administrator (Crawford) |
$4,794,503.00
|
$4,574,373.00
|
($220,130.00)
|
Credit balance will be offset by billings
in Year 3. |
| Canadian Blood Services (CBS) |
$1,074,840.00
|
$877,289.00
|
($197,551.00)
|
Credit balance will be offset by billings
in Year 3. |
| PriceWaterhouse-Coopers LLP |
$26,750.00
|
$50,253.00
|
$23,503.00
|
Actual expenses have been paid |
6. The following chart summarizes the proposed budgets
for service providers in Year 3.
|
Service
Provider
|
Budget
to March 31, 2003
(excludes GST)
|
Proposed
Monthly Charges
(excludes GST)
|
Auditor (Deloitte & Touche)
|
$48,000.00
|
$4,000.00
|
Trustee
(Royal Trust) |
$166,870.00
|
Up to $13,906.00
|
Investment Manager
(TD Asset Management Inc.) |
$263,004.00
|
Up to $21,917.00
|
Actuary
(Eckler Partners Ltd.) |
$40,000.00
|
$3,333.33
|
Investment Review
(Eckler Partners Ltd.) |
$20,000.00
|
$1,666.67
|
Administrator
(Crawford) |
$3,874,054.00
|
$322,837.83
|
Canadian Blood Services
(CBS) |
$399,762.98
|
$33,313.57
|
PriceWaterhouseCoopers LLP
|
$37,245.00
|
See Paragaph 45
|
7. Fund Counsel incurred fees and disbursements in the 12 months ending
March 31, 2002 of approximately $661,595.95 exclusive of taxes. It is anticipated
that this amount will be similar in Year 3 as the volume of appeals has increased.
No amounts are paid to Fund Counsel without a specific court order.
8. Joint Committee fees incurred in the 12 months ending March 31, 2002 (exclusive
of taxes) were approximately $775,000.00, approximately $425,000.00 less than
in Year 1. No amounts are paid to the Joint Committee without a specific court
order.
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